Slide 1: FY15 Results Briefing
For personal use only FY15 RESULTS BRIEFING 20 AUGUST 2015
Slide 2: Contents
CONTENTS For personal use only FY15 Summary 3 Our Business 6 FY15 Financial Performance 10 Acquisitions & Investments 21 FY16-18 Strategy 24 FY16 Outlook 32 Q&A 34
Slide 3: FY15 Summary
For personal use only FY15 SUMMARY
Slide 4: FY15 Summary
4 FY15 SUMMARY For personal use only “We built on the strong 1H and finished the year with NPAT 41% ahead of the pcp. The board is pleased to declare a full year dividend of 6.3 cps, an increase of 40% on pcp”
Slide 5: FY15 Summary
5 FY15 SUMMARY For personal use only Successfully transitioning the business: • Transition program • People satisfaction up • Solid strategy centred on customers • Acquisitions accretive • Customer satisfaction up • Management strength and depth Overall a solid and improved performance.
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: Data#3 at a glance
For personal use only @eo@e000 TTT 1100+ | EMPLOYEES IN 2015 8 OFFICES Seen 3 INTEGRATION CENTRES 3 DATA CENTRES FOUNDED IN LISTED ON: 1977 ASK ne 870.5 MILLION °=r.. S88 EXPANDING BRAND DOLLARS IN REVENUE IN FY15
Slide 8: Our Business – What We Do
8 OUR BUSINESS – WHAT WE DO For personal use only CONSULTING APPLICATION SOFTWARE SOLUTIONS Making our customers SOLUTIONS more successful and delivering exceptional performance and shareholder returns PROFESSIONAL INFRASTRUCTURE & MANAGED SOLUTIONS SERVICES
Slide 9: Our Business – Strategic Partners
9 OUR BUSINESS – Strategic Partners For personal use only Top 10 worldwide, global awards, global advisory role Top 10 Asia Pacific, advisory board Top 10 worldwide, global advisory board with CEO Plus largest partner in Australia for several infrastructure and software suppliers
Slide 10: FY15 Financial Performance
For personal use only FY15 FINANCIAL PERFORMANCE
Slide 11: FY15 Performance - Growth
11 FY15 PERFORMANCE - GROWTH For personal use only Revenue Up 4.4% $870.5M Product Up 1.7% $709.2M Services Up 18.9% $160.2M Gross Profit Up 8.9% $129.5M Product Up 6.6% $66.2M Services Up 11.4% $63.3M Gross margin Up 0.6 pp 14.9% Product Up 0.4 pp 9.3% Services Down 2.7 pp 39.5% Expenses Up 5.8% $1
Slide 12: Strategic Shift in Business Mix
12 STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product revenue ($M) Total revenue ($M) 800 689.1 709.2 639.6 697.3 1000 586.4 870.5 600 513.6 811.4 833.6 771.0 800 697.8 400 599.2 600 200 400 0 FY10 FY11 FY12 FY13 FY14 FY15 200 0 FY10 FY11 FY12 FY13 FY14 FY15 Services revenue ($M) 160.2 16
Slide 13: Solid Growth in Gross Profit
13 SOLID GROWTH IN GROSS PROFIT For personal use only Services gross profit ($M) 80 56.1 58.3 63.3 Total gross profit ($M) 56.8 129.5 60 51.7 140 122.5 42.9 120.0 118.9 120 111.7 40 90.0 100 20 80 60 0 40 FY10 FY11 FY12 FY13 FY14 FY15 20 0 FY10 FY11 FY12 FY13 FY14 FY15 Product gross profit ($M) 80 6
Slide 14: Expenses Reflect Growth Strategy
14 EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) 92.9 97.8 100 87.9 90.2 77.0 80 63.5 60 40 20 Internal staff costs up 5.3% as headcount increased with 0 Business Aspect acquisition, and growth to support the FY10 FY11 FY12 FY13 FY14 FY15 sales focused plan. Operat
Slide 15: Return to Growth
15 RETURN TO GROWTH For personal use only NPAT ($M) EPS (cents) 20 12 15.0 13.7 9.74 15 10 8.88 12.1 7.88 10.9 10.6 8 7.09 6.89 10 7.5 6 4.89 5 4 2 0 0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 DPS (cents) 7.70 8 7.00 7.00 6.30 Solid growth in gross profit in line with our sales fo
Slide 16: FY15 Performance - NPBT
16 FY15 PERFORMANCE - NPBT For personal use only Change in NPBT elements from FY14 to FY15 20.0 15.2 15.0 10.9 10.0 $M 6.5 5.0 4.1 0.5 0.0 -0.5 -1.4 -5.0 -4.9 -10.0
Slide 17: FY15 Performance – Cashflow
17 FY15 PERFORMANCE – CASHFLOW For personal use only • Strong balance sheet with no material debt • Cash flow ‘seasonality’ consistent with previous years • Strong operating cash flow of $24.3M, with cash flow conversion of 2.3 times • Payments for acquisitions and investments (net of cash acquired)
Slide 18: Growth Reflects Strategic Shift
GROWTH REFLECTS STRATEGIC SHIFT 18 For personal use only SOFTWARE SOLUTIONS MANAGED SOLUTIONS • Licensing revenue matched PCP and • Revenue up 4% to $71M with growth in annuity-based • Continued investment impacted profitability subscriptions • Services up 13% APPLICATION SOLUTIONS INFRASTRUCTURE SO
Slide 19: Strong Growth in QLD & WA
19 STRONG GROWTH IN QLD & WA For personal use only % change in gross profit FY15 vs. FY14 NSW & VIC & QLD – largest profit contribution QLD ACT TAS SA WA NSW, ACT & VIC – growth below plan 30% 28.0% TAS – early days and small 20% SA – growth in tough market 10.0% 10% WA – diversified customers and s
Slide 20: Record Customer & People Satisfaction
20 RECORD CUSTOMER & PEOPLE SATISFACTION For personal use only Customer satisfaction /5 People satisfaction /5 5 4.06 5 3.98 3.98 3.97 3.97 4.11 3.96 4.03 4.03 3.98 3.86 3.87 4 4 3 3 2 2 1 1 0 0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 People numbers 1200 1117 990 989 989 1000 888
Slide 21: Acquisitions & Investments
For personal use only ACQUISITIONS & INVESTMENTS
Slide 22: Business Aspect
22 BUSINESS ASPECT For personal use only Acquisition of Business Aspect successfully completed • Effective date 5th September 2014 • Contributed $10.4M to revenue • Fully relocated into Data#3 offices and consulting capability expanded into NSW, ACT and VIC • Engagement with Data#3 sales force and p
Slide 23: Discovery Technology
23 DISCOVERY TECHNOLOGY For personal use only Fully engaged as reseller with Discovery Technology • Developer of Wi-Fi content management and analytics application “CCeX” - Connected Customer eXperience • 46.2% investment effective 1st August 2014, with additional 15.4% acquired on 3rd July 2015 • D
Slide 24: FY16-18 Strategy
For personal use only FY16-18 STRATEGY
Slide 25: Underlying Fundamentals Influencing Sector Growth
25 UNDERLYING FUNDAMENTALS INFLUENCING SECTOR GROWTH For personal use only • Economic outlook is neutral and similar to FY15 • Education and health sectors will continue to grow • A rapid shift to consumption based and cloud services • Global Public Clouds will dominate • Security as the number one
Slide 26: FY16-18 High Level Strategy
26 FY16-18 HIGH LEVEL STRATEGY For personal use only Our strategy is the pathway to enable our Customers’ Success. It unites Innovative Solutions, Remarkable People and Organisational Excellence through our Solutions Framework. We believe that making our customers more successful consistently over t
Slide 27: Priorities Underpinning Strategic Growth
27 PRIORITIES UNDERPINNING STRATEGIC GROWTH For personal use only Strategic priorities for FY16 • Customer Success by enabling business and technology outcomes • Innovative Solutions that are increasingly service centric in a Hybrid IT world • Remarkable People who are high performing, evolving and
Slide 28: Our Solutions
28 OUR SOLUTIONS For personal use only We offer a range of technology solutions to help customers achieve their business objectives.
Slide 29: The Path to Our Future
29 THE PATH TO OUR FUTURE For personal use only Shift to an Transform and Grow Core Business + Build Transition Platform –T4 + increasingly Services Business Our core consists primarily of T4 Services Revenue consists of software licenses and on People all services provided by Data#3 premise infrast
Slide 30: Our Transition Strategy
30 OUR TRANSITION STRATEGY For personal use only Our transition strategy is to: 1. Grow and transform the core 2. Build specialist business units to address new market demands 3. Partner or acquire to address new market opportunity
Slide 31: Actions in Progress for FY16
31 ACTIONS IN PROGRESS FOR FY16 For personal use only 1. Establish new security practice 2. Expand partnerships in education sector 3. Accelerate public cloud opportunities 4. Deliver sales development programs to support the transition strategy 5. Leverage Business Aspect & Discovery Technology
Slide 32: FY16 Outlook
For personal use only FY16 OUTLOOK
Slide 33: FY16 Outlook
33 FY16 OUTLOOK For personal use only Our overall financial goal for FY16 is to improve on FY15’s result
Slide 34: Q&A
For personal use only Q&A
Slide 35: Appendix – Financial Summary
35 APPENDIX 1 – FINANCIAL SUMMARY For personal use only
Slide 36: Disclaimer
36 DISCLAIMER For personal use only This presentation has been prepared by Data#3 Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete
Slide 37: Contact Us
CONTACT US For personal use only Interested in how Data#3 can help? www.data3.com.au | 1300 23 28 23 Follow Us Twitter.com/Data3Limited Facebook.com/Data3Limited Linkedin.com/company/Data3 Youtube.com/Data3Limited